20.1 SUBSIDIARY GUARANTEES OF DEBT
Published on November 14, 2001
EXHIBIT 20.1
Subsidiary Guarantees of Debt
The company's Senior Notes, Senior Subordinated Notes and Senior Credit Facility agreements are guaranteed on a full, unconditional
and joint and several basis by certain of the company's wholly owned domestic subsidiaries. The following is condensed,
consolidating financial information for the company, segregating the guarantor subsidiaries and non-guarantor subsidiaries, as of
September 30, 2001, and December 31, 2000, and for the nine-month periods ended September 30, 2001, and October 1, 2000 (in millions
of dollars). The presentation of certain prior-year amounts has been changed in order to conform to the current-year presentation.
Separate financial statements for the guarantor subsidiaries and the non-guarantor subsidiaries are not presented because management
has determined that such financial statements would not be material to investors.
CONSOLIDATED BALANCE SHEET
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September 30, 2001
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Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
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ASSETS
Current assets
Cash and temporary investments $ 14.0 $ 0.5 $ 21.9 $ - $ 36.4
Accounts receivable, net 1.4 308.1 41.6 - 351.1
Inventories, net - 376.1 81.1 - 457.2
Deferred income tax benefits and
prepaid expenses 270.3 104.0 1.2 (275.0) 100.5
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Total current assets 285.7 788.7 145.8 (275.0) 945.2
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Property, plant and equipment, at cost 25.7 1,559.4 267.2 - 1,852.3
Accumulated depreciation (14.2) (845.4) (124.7) - (984.3)
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11.5 714.0 142.5 - 868.0
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Investments in subsidiaries 1,610.2 45.3 9.8 (1,665.3) -
Investments in affiliates 7.7 15.0 44.4 - 67.1
Goodwill, net - 313.4 31.4 - 344.8
Other assets 78.8 48.2 17.8 - 144.8
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Total Assets $ 1,993.9 $ 1,924.6 $ 391.7 $ (1,940.3) $ 2,369.9
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion
of long-term debt $ 72.2 $ - $ 83.6 $ - $ 155.8
Accounts payable 17.1 207.9 46.6 - 271.6
Accrued employee costs and other
current liabilities 36.1 364.5 64.8 (275.0) 190.4
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Total current liabilities 125.4 572.4 195.0 (275.0) 617.8
Long-term debt 955.7 10.1 - - 965.8
Intercompany borrowings 265.6 381.9 51.3 (698.8) -
Employee benefit obligations,
deferred income taxes and other 130.5 75.2 53.7 - 259.4
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Total liabilities 1,477.2 1,039.6 300.0 (973.8) 1,843.0
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Contingencies
Minority interests - - 10.2 - 10.2
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Shareholders' Equity:
Series B ESOP Convertible Preferred
Stock 49.7 - - - 49.7
Convertible preferred stock - - 179.6 (179.6) -
Unearned compensation - ESOP (5.4) - - - (5.4)
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Preferred shareholders' equity 44.3 - 179.6 (179.6) 44.3
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Common stock 467.7 724.4 239.1 (963.5) 467.7
Retained earnings (deficit) 407.9 169.5 (310.9) 141.4 407.9
Accumulated other comprehensive loss (41.1) (8.9) (26.3) 35.2 (41.1)
Treasury stock, at cost (362.1) - - - (362.1)
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Common shareholders' equity (deficit) 472.4 885.0 (98.1) (786.9) 472.4
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Total shareholders' equity 516.7 885.0 81.5 (966.5) 516.7
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Total Liabilities and Shareholders'
Equity $ 1,993.9 $ 1,924.6 $ 391.7 $ (1,940.3) $ 2,369.9
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CONSOLIDATED BALANCE SHEET
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December 31, 2000
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Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
ASSETS
Current assets
Cash and temporary investments $ 12.3 $ 0.2 $ 13.1 $ - $ 25.6
Accounts receivable, net 3.0 171.4 55.8 - 230.2
Inventories, net - 498.8 128.7 - 627.5
Deferred income tax benefits and
prepaid expenses 197.5 114.7 6.2 (232.4) 86.0
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Total current assets 212.8 785.1 203.8 (232.4) 969.3
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Property, plant and equipment, at cost 25.8 1,534.8 340.6 - 1,901.2
Accumulated depreciation (15.2) (768.2) (114.1) - (897.5)
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10.6 766.6 226.5 - 1,003.7
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Investments in subsidiaries 1,476.5 340.0 9.8 (1,826.3) -
Investments in affiliates 7.8 15.7 57.7 - 81.2
Goodwill, net - 338.8 98.0 - 436.8
Other assets 81.0 43.9 33.9 - 158.8
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Total Assets $ 1,788.7 $ 2,290.1 $ 629.7 $ (2,058.7) $ 2,649.8
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion
of long-term debt $ 67.2 $ - $ 58.5 $ - $ 125.7
Accounts payable 7.4 262.8 61.9 - 332.1
Accrued employee costs and other
current liabilities 45.5 349.5 38.7 (232.4) 201.3
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Total current liabilities 120.1 612.3 159.1 (232.4) 659.1
Long-term debt 1,001.5 10.1 - - 1,011.6
Intercompany borrowings (142.1) 59.8 82.3 - -
Employee benefit obligations,
deferred income taxes and other 126.8 98.5 56.5 - 281.8
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Total liabilities 1,106.3 780.7 297.9 (232.4) 1,952.5
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Contingencies
Minority interests - - 14.9 - 14.9
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Shareholders' Equity:
Series B ESOP Convertible Preferred
Stock 53.4 - - - 53.4
Convertible preferred stock - - 179.6 (179.6) -
Unearned compensation - ESOP (10.6) - - - (10.6)
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Preferred shareholders' equity 42.8 - 179.6 (179.6) 42.8
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Common stock 443.9 1,155.7 239.7 (1,395.4) 443.9
Retained earnings (deficit) 529.3 355.7 (78.6) (277.1) 529.3
Accumulated other comprehensive loss
(29.7) (2.0) (23.8) 25.8 (29.7)
Treasury stock, at cost (303.9) - - - (303.9)
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Common shareholders' equity 639.6 1,509.4 137.3 (1,646.7) 639.6
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Total shareholders' equity 682.4 1,509.4 316.9 (1,826.3) 682.4
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Total Liabilities and Shareholders'
Equity $ 1,788.7 $ 2,290.1 $ 629.7 $ (2,058.7) $ 2,649.8
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CONSOLIDATED STATEMENT OF EARNINGS
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For the Nine months Ended September 30, 2001
-----------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
Net sales $ - $ 2,708.8 $ 331.2 $ (196.9) $ 2,843.1
Costs and expenses
Cost of sales (excluding depreciation
and amortization) - 2,339.7 283.9 (196.9) 2,426.7
Depreciation and amortization 1.5 95.6 17.6 - 114.7
Business consolidation costs - 16.0 237.7 - 253.7
Selling and administrative 8.7 63.7 19.2 - 91.6
Receivable securitization fees and
product development - 9.0 (0.3) - 8.7
Interest expense 46.0 18.2 4.3 - 68.5
Equity in net results of subsidiaries 151.1 - - (151.1) -
Corporate allocations (39.4) 39.4 - - -
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167.9 2,581.6 562.4 (348.0) 2,963.9
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Earnings (loss) before taxes (167.9) 127.2 (231.2) 151.1 (120.8)
Provision for taxes 60.7 (45.6) (3.8) - 11.3
Minority interests - - 0.7 - 0.7
Equity in net results of affiliates (0.1) (0.4) 2.0 - 1.5
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Net earnings (loss) (107.3) 81.2 (232.3) 151.1 (107.3)
Preferred dividends, net of tax (1.8) - - - (1.8)
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Earnings (loss) attributable to common
shareholders $ (109.1) $ 81.2 $ (232.3) $ 151.1 $ (109.1)
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CONSOLIDATED STATEMENT OF EARNINGS
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For the Nine months Ended October 1, 2000
-----------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
Net sales $ - $ 2,674.7 $ 358.5 $ (196.2) $ 2,837.0
Costs and expenses
Cost of sales (excluding depreciation
and amortization) - 2,269.4 300.4 (196.2) 2,373.6
Depreciation and amortization 1.6 95.1 21.9 - 118.6
Business consolidation costs 2.3 15.1 59.0 - 76.4
Selling and administrative 7.3 74.6 21.4 - 103.3
Receivable securitization fees and
product development 0.1 10.7 0.1 - 10.9
Interest expense 59.6 8.1 3.9 - 71.6
Equity in net results of subsidiaries (49.4) - - 49.4 -
Corporate allocations (42.4) 42.4 - - -
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(20.9) 2,515.4 406.7 (146.8) 2,754.4
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Earnings (loss) before taxes 20.9 159.3 (48.2) (49.4) 82.6
Provision for taxes 28.5 (61.0) 0.8 - (31.7)
Minority interests - - 2.1 - 2.1
Equity in net results of affiliates (0.3) (0.3) (3.3) - (3.9)
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Net earnings (loss) 49.1 98.0 (48.6) (49.4) 49.1
Preferred dividends, net of tax (1.9) - - - (1.9)
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Earnings (loss) attributable to common
shareholders $ 47.2 $ 98.0 $ (48.6) $ (49.4) $ 47.2
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CONSOLIDATED STATEMENT OF CASH FLOWS
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For the Nine months Ended September 30, 2001
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Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
Cash Flows from Operating Activities
Net earnings (loss) $ (107.3) $ 81.2 $ (232.3) $ 151.1 $ (107.3)
Noncash charges to net earnings:
Depreciation and amortization 1.5 95.6 17.6 - 114.7
Business consolidation costs - 16.0 235.2 - 251.2
Deferred income taxes (25.6) 46.1 2.1 - 22.6
Equity in net results of subsidiaries 151.1 - - (151.1) -
Other, net 9.7 (31.8) (1.7) - (23.8)
Changes in working capital
components (50.5) (104.7) 2.3 - (152.9)
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Net cash provided by (used in)
operating activities (21.1) 102.4 23.2 - 104.5
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Cash Flows from Investing Activities
Additions to property, plant and
equipment (2.2) (36.2) (11.1) - (49.5)
Investments in and advances to
affiliates, net of dividends 114.1 (83.1) (31.0) - -
Incentive loan receipts and other, net (0.8) 17.2 2.6 - 19.0
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Net cash provided by (used in)
investing activities 111.1 (102.1) (39.5) - (30.5)
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Cash Flows from Financing Activities
Repayments of long-term borrowings (39.0) - - - (39.0)
Change in short-term borrowings 3.5 - 25.1 - 28.6
Common and preferred dividends (14.4) - - - (14.4)
Proceeds from issuance of common
stock under various employee and
shareholder plans 23.4 - - - 23.4
Acquisitions of treasury stock (58.1) - - - (58.1)
Other, net (3.7) - - - (3.7)
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Net cash provided by (used in)
financing activities (88.3) - 25.1 - (63.2)
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Net Change in Cash and Temporary
Investments 1.7 0.3 8.8 - 10.8
Cash and Temporary Investments -
Beginning of Period 12.3 0.2 13.1 - 25.6
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Cash and Temporary Investments -
End of Period $ 14.0 $ 0.5 $ 21.9 $ - $ 36.4
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CONSOLIDATED STATEMENT OF CASH FLOWS
-----------------------------------------------------------------------------
For the Nine months Ended October 1, 2000
-----------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
Cash Flows from Operating Activities
Net earnings (loss) $ 49.1 $ 98.0 $ (48.6) $ (49.4) $ 49.1
Noncash charges to net earnings:
Depreciation and amortization 1.6 95.1 21.9 - 118.6
Business consolidation costs 2.3 22.1 56.9 81.3
Deferred income taxes (23.3) 24.6 (5.6) (4.3)
Equity in net results of subsidiaries (49.4) - - 49.4 -
Other, net 6.6 (22.2) 1.0 - (14.6)
Changes in working capital
components (29.9) (141.4) (9.9) - (181.2)
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Net cash provided by (used in)
operating activities (43.0) 76.2 15.7 - 48.9
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Cash Flows from Investing Activities
Additions to property, plant and (0.7) (59.9) (9.2) - (69.8)
equipment
Investments in and advances to
affiliates, net 79.4 (36.6) (42.8) - -
Other, net 3.6 34.4 3.9 - 41.9
------------- -------------- ---------------- -------------- --------------
Net cash provided by (used in)
investing activities 82.3 (62.1) (48.1) - (27.9)
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Cash Flows from Financing Activities
Long-term borrowings 30.0 - - - 30.0
Repayments of long-term borrowings (27.8) (13.9) - - (41.7)
Change in short-term borrowings - - 33.1 - 33.1
Common and preferred dividends (15.4) - - - (15.4)
Net proceeds from issuance of common
stock under various employee and
shareholder plans 25.9 - - - 25.9
Acquisitions of treasury stock (57.4) - - - (57.4)
Other, net (2.8) - (1.1) - (3.9)
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Net cash provided by (used in)
financing activities (47.5) (13.9) 32.0 - (29.4)
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Net Change in Cash and Temporary
Investments (8.2) 0.2 (0.4) - (8.4)
Cash and Temporary Investments -
Beginning of Period 13.6 0.2 22.0 - 35.8
------------- -------------- ---------------- -------------- --------------
Cash and Temporary Investments -
End of Period $ 5.4 $ 0.4 $ 21.6 $ - $ 27.4
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